Car Seat Restraint Safety

Children as young as 12 months old can unbuckle their seatbelts according to research conducted at Yale University's School of Medicine. Boys attempt to unhook their seatbelts more often than girls. "Kids only 12 Months Old Can Undo Car Seat Restraints," MSNBC (May 1, 2011).

More than 40 percent of children under the age of three who are able to unbuckle restraints do so while the car is moving. According to the American Automobile Association (AAA), if left unrestrained in a 30 mph crash, children may be thrown forward with a force equal to 30 times their own body weight. For a 10-pound infant, this equates to 300 lbs of force and is equivalent to falling from a three-story building.

Commentary

Car accidents are the leading cause of death in children between the ages of four to eight according to the Centers for Disease Control and Prevention (CDC).

The American Academy of Pediatrics recommends that children ride in rear facing car seats until the age of two. Children under the age of two who are rear facing in car seats are 75 percent less likely to die or become injured in car accidents.

Children should ride in booster seats until they are 4' 9" inches tall and between the ages of 8 and 12.

The National Highway Traffic Safety Administration recommends the following precautions for car seat safety:

• Select a car seat based on your child's age, height and weight.
• Keep your child in the car seat for as long as your child fits in the seat's height and weight requirements.
• All children under the age of 13 should ride in the back seat.

Window Safety

Falls from windows result in an average of about eight deaths every year to children five years or younger according to the Consumer Product Safety Commission (CPSC). "CPSC: Parents, Caregivers Should Consider Safety Before Opening Windows," CPSC (Apr. 8, 2011).

An estimated 3,300 children in the same age range are treated in U.S. hospital emergency departments each year. On average, one of every three children, or approximately 34 percent, requires hospitalization after falling from a window.

Commentary

Deaths and injuries most frequently occur when children push themselves against window screens or climb onto furniture located next to open windows. These incidents increase dramatically during the spring and summer months.

In many cases the deaths and injuries are preventable.

The CPSC provides safety tips for parents and caregivers to help prevent open window injuries and deaths:

• Safeguard your children by using window guards or window stops. Install stops so that windows open no more than four inches.
• For windows on the 6^th floor and below, install window guards that adults and older children can open easily in case of a fire.
• Never depend on screens to keep children from falling out of windows.
• Open windows from the top instead of the bottom whenever possible.
• Keep furniture away from windows to discourage children from climbing near them.
• Check local regulations. Some jurisdictions require landlords to install window guards.

Survey: Law Firms Face Rising Number of Malpractice Claims

The recent economic recession and prolonged real estate market slump are triggering a rise in the number of malpractice or professional liability claims lodged against law firms this year.   A new study by insurance broker Ames & Gough finds lawyers’ professional liability claim levels up in 2011 by as much as 20 percent at some of the leading insurance companies providing coverage for this exposure.
Ames & Gough examined the trend by polling six insurance companies that on a combined basis work with almost 75 percent of large and midsized U.S. law firms.  Three of the insurers indicated their claims are up by six to 10 percent this year and one saw an increase of 11 to 20 percent. Claim levels are flat at the two other insurers participating in the survey.
Eileen Garczynski, a vice president at Ames & Gough, said, “As law firm clients see their financial circumstances worsen, they’re more likely to seek redress from their advisers. If lawyers representing a client are not careful during the initial representation, they may well become targets for a malpractice claim when the client’s financials spiral downward.”
The insurers identified “real estate” as the practice area generating the largest percentage increase in new claims, followed by “corporate & securities” work, and “trusts & estates.”
Ames & Gough cited two key drivers for the rise in real estate-related legal malpractice claims:  one, being the sheer increase in transactions from 2005 to 2008, bringing with them more closings and increased risk of errors.  The second, plummeting property values compounds this situation, as buyers and lenders look to the parties involved in the transactions to lay blame and seek to recoup their losses.
“The good news,” noted Garczynski, “is that many economists now anticipate the bottoming of the real estate market. The worst may be behind us, so we might see real estate-related claims level off or actually start to drop.”
On the flip side, however, the survey found a significant uptick in the number of claims with reserves over $500,000 (including loss and expense). Three insurers saw an 11 to 20 percent increase in these claims this year and two pegged their growth at six to 10 percent.
There’s also a rise in multi-million dollar claim payments.  Five of the six insurers surveyed were involved in paying a claim of $50 million or more.  And while multiple insurers may participate on the same claim(s) given quota share coverage arrangements and excess limits, the share of claims resulting in multi-million dollar payouts clearly has been growing.
What issues generate the most claims?  The survey found “conflict of interest” to be the single largest cause of claims, followed by “failure to file timely.”
“Attorneys have an affirmative duty to identify and address conflicts of interest,” said Garczynski.  “The best way to address this potential issue is to screen new clients carefully, seek advance waivers where appropriate, and clarify who the client is for any given matter.”
According to Ames & Gough, with both the frequency and severity of lawyers’ professional liability claims on the rise, law firms need an effective process for identifying and reporting claims to their malpractice insurer.
“Law firms should set aside concerns that reporting a claim might affect the availability or pricing of their malpractice insurance,” Garczynski advised. “Instead, they need to recognize that early intervention often enhances the ability to defend a claim.”
The insurers participating in the Ames & Gough survey were: AXIS, Beazley, Berkley Select, CNA, Lexington, and Hartford.  Copies of the survey, Lawyers’ Professional Liability Claims Trends: 2011, may be obtained free of charge by emailing requests to: info@amesgough.com.   Those requesting the survey should include their name, title, affiliation, and phone number, and state “LPL Claims Survey” in the subject line.

Lightning Is an Underrated Killer; Knowing Fact From Fiction Can Save Lives and Prevent Injuries

June 13, 2011

I.I.I. Video:
Lightning Myths

INSURANCE INFORMATION INSTITUTE
New York Press Office: (212) 346-5500; media@iii.org

NEW YORK, June 9, 2011 — Because lightning is a common occurrence in most people’s lives, this destructive force of nature does not get the respect it deserves, according to the Insurance Information Institute (I.I.I.).

 

In fact, every year, lightning strikes the ground 30 million times and injures about a thousand people in the U.S, according to the Lightning Protection Institute (LPI).

 

Lightning is not only deadly; it can be destructive to property. An analysis of homeowners insurance data by the I.I.I. found there were more than 213,000 lightning claims in 2010, up nearly 15 percent from 2009. These losses ranged from damage to expensive electronic equipment to structural fires that destroyed entire homes.

 

The I.I.I. puts the average lightning claim at $4,846. By comparison, in 2009, there were about 185,000 lightning claims, which caused nearly $800 million in insured losses with the average claim totaling $4,296. The average cost per claim rose nearly 13 percent from 2009 to 2010 and more than 80 percent from 2004-2010, even as the actual number of claims fell by a little over 23 percent over the six-year period.

 

“Most people are very apathetic about protecting themselves from lightning,” said Jeanne M. Salvatore, I.I.I.’s senior vice president and consumer spokesperson. “And the average person often confuses lightning myths with lightning facts.”

 

According to the LPI, three of the most common lightning myths are:

1. Lightning never strikes the same place twice. Fact: Lightning often strikes the same place repeatedly, especially if it is a tall, pointy, isolated object. 

2. If it is not raining or if there are no clouds overhead, you are safe from lightning. Fact: Lightning often strikes more than three miles from the thunderstorm, far outside the area covered by the rain or even the thunderstorm clouds. 

3. Lightning rods attract lightning. Fact: Lightning rods DO NOT attract lightning. Instead, they provide a path to the ground for discharging the dangerous electricity. 

To protect yourself from lightning, the I.I.I. and the LPI recommend the following key actions:

1. If you are outside with a thunderstorm approaching, seek shelter inside a building as soon as possible—ideally in a structure with a lightning protection system. If you hear thunder, then lightning is close enough to strike. Remember, if thunder roars, go indoors!
2. If a building is not available take shelter in car with a metal roof and keep doors and windows closed. It is the metal frame of the car that protects you from lightning and not the rubber tires. Wearing rubber soled shoes will also not provide any protection. If there is no building or car in which to take shelter, try to minimize your risk by going to an area of lower elevation and staying away from bodies of water and trees. One of the most dangerous places to be in a thunderstorm is under a tree.
3. If someone has been struck by lightning, provide first-aid immediately. It is perfectly safe to touch someone who has been struck by lightning—you will not get an electrical shock. Call 911 immediately and begin CPR or use a defibrillator if available.
4. Invest in a lightning protection system for your home and or business. A building with a properly installed lightning protection system is a smart investment as it provides proven protection for your family, home and values. It is an important safety investment in areas prone to lightning. 

I.I.I. Podcasts are available on Lightning Myths and How to Pick a Lightning Protection System.

 

Lightning Safety Awareness Week is June 19 through the 25, with a kick-off event on June 17 in Austin, Texas. For more information on the event, contact Jamie Smethie at Jamie@cotedambrosio.com.  

 

For more information on lightning safety, visit the National Weather Service.

For more information on protecting your home or business from lightning, visit IBHS or the Lightning Protection Institute.

Avoiding Back-Over Tragedies

Avoiding Back-Over Tragedies

The U.S. Department of Transportation recently proposed a new safety regulation to help eliminate blind zones behind vehicles that hide pedestrians, young children and the elderly. The proposal would expand the required field of view for all passenger cars, pickup trucks, minivans, buses and low-speed vehicles with a gross vehicle weight rating of up to 10,000 pounds so that drivers can see directly behind the vehicle when the vehicle is in reverse. If passed, automobile manufacturers will have to install rear mounted video cameras and in-vehicle displays to meet the proposed standards. "U.S. DOT Proposes Rear View Visibility Rule to Protect Kids and the Elderly,"NHTSA (Dec. 3, 2010).

The Cameron Gulbransen Kids Transportation Safety Act of 2007 is named after a two-year-old boy who was killed when his father accidentally backed over him in the family's driveway,

Commentary

An average of 292 fatalities and 18,000 injuries occur every year as a result of back-over accidents according to the National Highway Transportation and Safety Administration (NHTSA).

Approximately 33 percent of fatalities are elderly people 70 years of age or older. Nearly 44 percent of fatalities are children under the age of five.

Most back-over accidents happen at home in driveways or in parking lots.
The NHTSA recommends the following precautions to reduce the risk of back-over accidents:

• Always supervise children while playing outside.
• Teach children to never play near motor vehicles, even if they're parked.
• If children play in your driveway, park your car at the end of it near the street.
• Check for playing children around your vehicle before getting in and backing up.
• Check all of your mirrors before putting the car in reverse and back up slowly.
• Provide children with a safe, fenced-in area to play outdoors and consider fencing off the driveway so children cannot wander onto it.

Baby Boomers Are Reaching Retirement Age In Shaky Economic Times; Insurance Can Provide Important Financial Protection

Those 65 and Older Can Save Money And Maximize Coverage Benefits, Says the I.I.I.

April 5, 2011

INSURANCE INFORMATION INSTITUTE
New York Press Office: (212) 346-5500; media@iii.org

NEW YORK, April 5, 2011 — The first of the baby boomers will turn 65 years old this year. This huge group of Americans who came of age in the 1960s and early 1970s will likely have insurance questions and concerns that differ from those of their parents’ generation, according to the Insurance Information Institute (I.I.I.).

 

According to research by the Pew Research Center Populations Projections, every day for the next 19 years about 10,000 Americans will turn 65, and by 2030 18 percent of the nation’s population will have reached this threshold. The Pew data also indicates that many boomers, those born between 1946 and 1964, have a very gloomy outlook on their personal finances. Compared with other age groups, they are the most likely to say that they have lost money on investments since the most recent recession began in December 2007, and that their finances have worsened in the recent years. In addition, a higher number of boomers reported cutting spending in the past year, as compared with those already age 66 and up.

 

“Baby boomers have reinvented every life stage they have experienced and are likely to approach retirement and aging differently than previous generations,” pointed out Jeanne M. Salvatore, senior vice president of Public Affairs for the I.I.I. “Given this generation’s understandable concerns about their personal finances, insurance can provide an important financial safety net when it is purchased properly.”

 

Fortunately, there are ways for people over 65 years old to reduce their insurance costs, while getting the important financial protection they need for themselves and their families.

 

The I.I.I. provides the following insurance and safety tips for aging boomers:

 

1.     Take a Look at Your Car
Older drivers have a higher rate of fatal crashes, based on miles driven, than any other group except young drivers. The primary reason for this high death is that older drivers are more easily injured than younger people and are more apt to have medical complications and die of those injuries.

It is important that your car be properly maintained in order to maximize its safety potential on the road. Older drivers should consider driving a car that is both easy to drive and provides the most physical protection for the occupants. When selecting a safe car, you should also check insurance costs, as the choice of a car can impact the cost of coverage.

If you are driving an older car, you can consider dropping the optional comprehensive and collision coverage on the vehicle, as this will also save money. As a general rule, if your car is worth less than 10 times the premium you are paying, the additional coverage is not cost effective. It is important, however, to continue to have adequate amounts of liability insurance in order to protect your assets in the event of an accident.  

 

2.     Get Driver Training
As we age, there are three key areas where most of us are likely to suffer some sort of impairment: vision; cognition, which includes memory loss; and flexibility declines, due to diseases such as arthritis. Fortunately, there are defensive driving classes specifically designed for aging drivers. Many insurance companies will also give a discount for taking an approved driving safety course.

 

3.     Keep Your Home Insurance Up-To-Date
It is easy to become complacent about insurance when if you have lived in the same home for a long period of time. However, for most people, their home is their greatest financial investment so it is important to make sure that the dwelling and its contents are protected with the right amount and type of insurance.

If you have made a major improvement or upgrade to your home, you may need more insurance coverage. Homeowners rarely upgrade their house without purchasing new items to put in their residence. And even those who have not made any upgrades to their home are likely to have accumulated a lot of things over the years, so it is important to discuss your home insurance needs with your agent or insurance company representative at least once a year.

And, remember, even if you have paid off your mortgage you should keep your homeowners insurance—even when no longer required to do so by the bank—because rebuilding a structure, and replacing your personal belongings, can cost hundreds of thousands of dollars. Depending on your location, you may also need separate flood and earthquake insurance, as these disasters are not covered under standard homeowners insurance policies.

Lastly, if you are an empty nester and are considering selling your home and renting or moving into a condo or co-op, you will still need insurance protection in the form of a renters or co-op/condo insurance policy. These polices will not only insure your personal possessions, but also provide liability insurance and cover additional living expenses in the event of a fire or other disaster.

For more information see Homeowners and Renters Insurance

 

4.     Make Your Home Safer and More Disaster Resistant
Many older people may feel more comfortable living in a home with a sophisticated alarm system that alerts the police, fire department and even emergency medical services if there is disaster. These systems may also provide peace of mind for those who spend much of their retirement traveling and are away from home. The good news is that many homeowners insurers also give discounts of 15 to 20 percent off a standard policy if you have installed recognized safety systems. Most insurance companies will also give discounts for of at least 5 percent for simple safety devices such as smoke detectors, burglar alarms and dead-bolt locks.

 

You may also qualify for a discount if you make your home more resistant to windstorms and other natural disasters. Adding storm shutters and shatter-proof glass, reinforcing your roof, as well as retrofitting an older home to withstand an earthquake and modernizing heating, plumbing and electrical systems will not only make your home safer, but may also have a positive effect on your home insurance premium.

 

5.     Consider Life Insurance
There are important financial reasons for maintaining your life insurance policy beyond the age of 65. Boomers are the quintessential ‘sandwich’ generation, and many will be nearing or entering retirement with responsibilities for both children and aging parents. Life insurance can help you fulfill your financial obligations, should you die with survivors who are both older and/or younger than you. Whole or Universal life may be a good choice for policyholders aged 65-plus because of the savings component. While life insurance is an important means of protecting financially a surviving spouse, disabled adult children or other dependents, some boomers may also want to use it as a mechanism to provide a donation to a beloved charity after they are deceased.

For more information, see Do Empty Nesters Need Life Insurance?.

 

6.     Look Into Immediate Annuities
There are many types of annuities, each designed for a specific financial goal. To help provide protection against outliving your assets, an immediate annuity may make sense. Social Security pays retirement income for as long as you live, as do defined-benefit pension plans, but the only other source of income available that continues indefinitely is an immediate annuity. An annuity may also provide some protection against creditors, as generally creditors can access only the payments from an immediate annuity as they are made, not the lump sum of money initially provided to the insurance company. Some state statutes and court decisions also protect some or all of the payments from those annuities.

For more information, see Annuities.

 

7.     Take Advantage of Discounts and Other Money Saving Tips
With boomers interested in cutting costs, there are fortunately many ways to reduce insurance premiums. The best ways to immediately cut auto and homeowners insurance policy costs are to shop around for a company that provides both a great price and outstanding service, take a higher deductible and ask about all available insurance discounts. Insurance companies offer a wide variety of discounts, such as for good credit.

Auto insurers will also give premium rate discounts for car pooling, a safe driving record and cars equipped with anti-theft devices. Some auto insurers will also provide discounts for those 55 years or older with safe driver records, as older drivers are less likely to drive aggressively or too fast.

Home insurers will generally offer discounts for those 55 years old and older who are retired.  If you have completely modernized your plumbing or electrical system recently, some companies may also provide a price break.

For additional tips, see Saving Money onAuto and Home Insurance.

 

8.     Schedule an Insurance Review to Reflect Life Changes

You generally don’t live to 65 without a number of major life events and all these changes will have an impact on your insurance needs. Marriage, divorce, retirement, career changes and even adult children who move back home (sometimes with children of their own) should be reflected in your insurance planning. Make sure that your insurance professional knows about all of these changes, along with any major home-improvement purchases or property expansions, and get his or her advice on how to adjust your insurance coverages to match your life changes.

100th Anniversary of Triangle Shirtwaist Fire a Reminder That Businesses Should Have a Disaster Plan In Place

Proper Risk Management Includes Getting the Right Insurance Coverage, Says I.I.I.

March 25, 2011

INSURANCE INFORMATION INSTITUTE
New York Press Office: (212) 346-5500; media@iii.org

NEW YORK, March 25, 2011 — The tragic Triangle Shirtwaist Fire, which occurred a century ago today, is a reminder to all businesses of the need to be prepared for a disaster. In addition to typical risks such as fire, there are a host of other risks that are unique to each particular type of business. So it is essential that business owners have a disaster plan in place, which includes buying the right type and amount of insurance. Business owners should also update their policies annually to include improvements, major purchases and increased rebuilding costs, according to the Insurance Information Institute (I.I.I.).

Do You Have a Disaster Plan In Place?

No matter how small or large a business, a business impact analysis should be developed to identify what an operation must do to protect itself in the face of a disaster. Large corporations often hire risk managers to handle this task and some companies hire consultants with expertise in disaster planning and recovery to assist them with their plans. But small businesses often have to be their own risk managers. 

 

Steps for setting up an effective disaster plan for your business:

Set up an emergency response plan and train employees how to carry it out. Make sure employees know whom to notify about the disaster and what measures to take to preserve life and limit property losses. 

• Write out each step of the plan and assign responsibilities to employees in clear and simple language. Practice the procedures set out in the emergency response plan with regular, scheduled drills.
• Compile a list of important phone numbers and addresses. Make sure you can get in touch with key people after the disaster. The list should include local and state emergency management agencies, major clients, contractors, suppliers, realtors, financial institutions, insurance agents and insurance company claim representatives. 
• Decide on a communications strategy to prevent loss of customers. Post notices outside your premises; contact clients by phone, email or regular mail; place a notice in local newspapers.
• Consider the things you may need during the emergency. Do you have a back-up source of power? A back-up communications system?
• Human resources. Protect employees and customers from injury on the premises. Consider the possible impact a disaster will have on your employees’ ability to return to work and how customers can return to your shop or receive goods or services.
• Physical resources. Inspect the physical plant(s) and assess the impact a disaster would have on the facilities. Make sure your plans conform to local building code requirements. 
• Business community. Even if your business escapes a disaster, there is still a risk of suffering significant losses due to the inability of suppliers to deliver goods or services or a reduction in customers. Businesses should communicate with their suppliers and markets (especially if they are selling to a business as a supplier) about their disaster preparedness and recovery plans, so that everyone is prepared.
• Protect your building. If you own the structure that houses your business, integrate disaster protection for the building as well as the contents into your plan. Consider the financial impact if your business shuts down as a result of a disaster. What would be the impact for a day, a week or an entire revenue period?

• Keep duplicate records. Back up computerized data files regularly and store them off-premises. Keep copies of important records and documents in a safe deposit box and make sure they are up-to-date.
• Identify critical business activities and the resources needed to support them. If you cannot afford to shut down your operations, even temporarily, determine what you will require to run the business at another location. 
• Find alternative facilities, equipment and supplies, and locate qualified contractors. Consider a reciprocity agreement with another business. Try to get an advance commitment from at least one contractor to respond to your needs.
• Protect computer systems and data. There are many data storage and cloud computing firms that offer offsite backups of computer data.
  

Review Your Insurance Plan

Make sure you have sufficient coverage to pay for the indirect costs of the disaster, such as the disruption to your business, as well as the cost of repair and/or rebuilding. Most standard business policies do not cover flood or earthquake damage so you may need to buy separate insurance for these perils. Be sure you understand your policy deductibles and limits. New additions or improvements to your facilities should always be reflected in your policy. This includes construction changes to a property and adding new equipment.

 

For a business, the costs of a disaster can extend beyond the physical damage to the premises, equipment, furniture and other business property. The potential loss of income while the premises are unusable should also be considered. 

 

“One of the biggest mistakes business owners make is that they don't buy the right type of insurance and often have gaps in their coverage,” said Loretta Worters, vice president, I.I.I. “Business owners should contact their insurance agent or company representative annually to make sure that their insurance is adequate.”

 

A Businessowners Policy (BOP) is recommended for most small businesses (usually 100 employees or less), as it is often the most affordable way to obtain broad coverage. BOPs are “off the shelf” policies combining many of the basic coverages needed by a typical small business into a standard package, at a premium that is generally less than would be required to purchase these coverages separately. As it combines both property and liability insurance, a BOP will cover your business in the event of property damage, suspended operations, lawsuits resulting from bodily injury or property damage to others, etc.

 

BOPs do NOT cover professional liability, auto insurance, workers compensation or health and disability insurance. You will need separate insurance policies to cover professional services, vehicles and your employees.

 

For medium-sized and larger businesses, there are more comprehensive commercial policies. To properly insure your business, the I.I.I. suggests that you ask your agent or company representative these important questions to determine if you have the right type of policy and amount of coverage:

 

1. Do I have enough insurance to rebuild my business property and replace all of my merchandise and possessions?

A Building and Personal Property coverage (BPP) policy is commonly used to cover any combination of the following three broad categories: the building, your business personal property and the personal property of others. Usually the covered building is owned by the insured. However, a lessee might insure a leased building when required to do so by the terms of the lease.

 

Your BPP coverage includes seven specific categories:

1. Furniture and fixtures
2. Machinery and equipment
3. Stock (i.e., merchandise held in storage, including raw materials, work in-progress and finished goods)
4. All other personal property owned by you and used in your business
5. Labor, materials and services furnished or arranged by you on the personal property of others
6. If a tenant, the improvements or betterments you have made
7. Leased personal property that you have a contractual responsibility to insure

It is vital that the value of your property be accurately reported and updated annually to reflect inflation and other increases in cost.

 

2. Do I have enough insurance to protect the personal property of my employees?

In order to protect the property of your employees, you will need to add Personal Effects and Property of Others coverage to your policy. This coverage permits the insured to extend up to $2,500 worth of its business personal property coverage to personal effects of the insured and its officers, partners or employees and personal property of others in the insured’s care, custody or control. The personal effects coverage does not include theft, even when theft is a covered cause of loss under the policy.

 

If the $2,500 limit is inadequate, a higher limit can be purchased.

 

3. Do I have enough insurance to keep my business open?

A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential, so business interruption insurance is crucial.

 

“Make sure the policy limits are sufficient to cover your company for more than a few days,” said Worters. “After a major disaster, it can take more time than many people anticipate to get a business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in,” she added. “Too many business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that it was temporarily unusable.”

 

The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also a real estate agency can more easily operate out of another location.

 

There are typically four types of business interruption insurance. You can purchase any one of these or any combination of them that would make sense for your business:

 

• Business income coverage: Compensates you for lost income if your company has to vacate its premises due to disaster related damage that is covered under your property insurance policy. Business income insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, such as electricity, that continue even though business activities have come to a temporary halt.
  
  Review your annual financial records with your accountant to determine your annual net profit (total revenue minus total expenses). You should also have an approximate idea of how much profit you make (and would therefore lose) during a typical year. Purchase enough business income coverage to protect at least this amount of revenue.)

 

• Extra income coverage: Reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period.
  
  In order to calculate how much extra expense coverage you will need, an appraisal of your office building or any other operating locations should be made as well as a detailed inventory, not only of your product stock but also of your existing office equipment.

 

• Contingent business interruption insurance: Protects a business owner’s earnings following physical loss or damage to the property of the insured’s suppliers or customers (as opposed to the business owner’s own property). Companies today are heavily dependent on raw materials from key suppliers to make the products they sell. What happens if the supplier suffers a loss and cannot continue to deliver the product?
  
  Make sure to determine how much revenue would be lost if you were unable to receive your product from your main supplier or if your main customers were unable to buy from you.

 

• Ordinance or Law: Provides coverage to rebuild or repair any buildings occupied by the business in compliance with the most recent local building codes.

“Most business owners are complacent about natural disasters until it affects their business,” said Worters. “Too often it’s only once the owner has gone through a disaster that he or she starts considering a disaster plan, including purchasing the proper insurance.”

 

Business owners can download a copy of the Insurance Institute for Business & Home Safety’s Open for Business: A Disaster Planning Toolkit for the Small Business Owner or find information at the Small Business Administration.

 

The I.I.I. has posted a special section dedicated to the Triangle Fire Centennial. Facts and Statistics on Fire Losses as well as Workplace Safety and Workers Compensation are also available.

 

 

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